New trade agreements and opportunities
Benjamin Vallin,
European Commission DG Trade
Agriculture, Sanitary and PhytosanitaryMarket Access, Biotechnology
The EU in global agri-food trade
2
The EU is an agri-food trading power
3
Largest
exporter
€ 138 bn
(2017)
Largest
importer
€ 117 bn
(2017)
Sources: Eurostat
Top-5 exporters and importers of agricultural and food products
EU trade agreements
5
Existing agreements
• “First generation” agreementsMainly tariff elimination
Mediterranean countries, Chile…
• “New generation” agreementsTariff elimination + new areas and rules, including sustainable development
Japan, Canada, Korea, Andean countries, Central America
• “Deep and comprehensive” free trade areasTo support close economic relations with neighbours
Ukraine, Georgia, Moldova
Outcomes – tariffs
• Japan
PRODUCT
Outcomes – tariffs
• Canada
• 90,9% liberalised on day 1
• Up to 91,7% by 2024
PRODUCT BEFORE AFTER
Cheese 13 500 tonnes duty-free quota 32 000 tonnes duty-free quota (2022)
Chocolate, confectionery Up to 10% 0% from day 1
Bread, pastries, biscuits Up to 15% 0% from day 1
Sugar 30,86 CAD/tonne 0% in 2024
Outcomes – food safety, animal and plant health
• Chapters on sanitary and phytosanitary matters (SPS) facilitate trade of safe products and promote:• Transparency in rules and procedures
• Faster procedures for approving safe food imports
• “Regionalisation” to allow imports from disease-free areas
• Cooperation on animal welfare, antimicrobial resistance, technical expertise
• Promotion of a high level of protection in neighbouring countries:• “SPS strategies” for Moldova and Georgia; in the process for Ukraine.
• In 2017, the Commission increased market access for European…• pork in Mexico
• dairy products in Peru
• poultry in Ukraine
• beef in Japan and Chile
Outcomes – distinctive regionalfood and drink products
Extended protection in countries whichoften did not offer such protection beforethe agreement.
• Examples:
• Ecuador: 116 products
• Canada: 143 food products in addition to wines & spirits
• Japan: 205 products
Results
• Free trade agreements =
• Boost in agri-food exports
32,1%
+ 4,7%(Japan)
of EU agri-food exports (2017)
Partner Annual export growth (Average 2013-2017)
Central America 7,8%
Andean countries 12,6% New generation agreements
South Korea 12,4%
All non-EU countries 3,5%
Concluded negotiations
• Singapore: signed; needs approval of Parliament
• Vietnam: needs approval of Council and Parliament
• Mexico (modernisation): legal review; needs approval of Parliament and Council
Vietnam
• Scraps tariffson key products
• Protects 169 food and drink specialties
• Easier administrative procedures:• Same requirements for products from all EU countries
• Faster and more transparent approval procedures
• Approval for product categories, for all establishments, without prior individual inspections
• Regionalisation - allows imports from disease-free areas
MexicoScraps tariffs on key products Protects 340 distinctive products
Main ongoing negotiations
• Mercosur
• Australia
• New Zealand
• Chile (modernisation)
• Indonesia
• Tunisia (modernisation)
Non-exhaustive list
Mercosur
Mercosur
• Opportunities for EU farmers and food producers
Mercosur
Geographical indications protectionRegion where European products are copied most often!
Chapter on food safety and animal and plant health (SPS)• Prelisting of establishments allowed to export• Timely and more transparent audits
Mercosur
• The deal safeguards the interests of EU farmers.
• Some products are
• sensitive for the EU, but
• key export interests for Mercosur
• Mercosur will have only limited access to the EU using tariff rate quotas (exports at a lower tariff up to a pre-agreed amount).
Practical help
for exporters
21
How to export from the EUMarket Access Database
• Applied Tariffs
• Statistical Database
• Non-tariff barriers
• Sanitary and Phytosanitary Database
• Exporters' Guide to Import Formalities
• Export studies
22
EU Trade on Twitter
@Trade_EU europa.eu/trade/
EU Trade News
europa.eu/eutn/register.htm
More
• EU Trade website: http://ec.europa.eu/trade/
• EU Trade on Twitter: https://twitter.com/Trade_EU
• Commissioner website: http://ec.europa.eu/commission/2014-2019/malmstrom_en
• Commissioner on Twitter: https://twitter.com/MalmstromEU
• EU Trade Newsletter: http://trade.ec.europa.eu/eutn/register.htm
• How to export from the EU: http://madb.europa.eu/madb/indexPubli.htm
• How to export into the EU: www.exporthelp.europa.eu
24
Thank you
25